Summary
Verizon Communications Inc. (VZ) announced its 2026 financial outlook and capital return plans on January 30, 2026. The company expects its strategic changes and cost structure improvements to fund ongoing business investments for long-term growth, facilitate further reduction of net unsecured debt to Adjusted EBITDA, and enable the return of approximately $55 billion to stockholders through dividends and share repurchases by the end of 2028. Key components of this plan include a quarterly dividend increase to $0.7075 per share, payable in May 2026, and a new $25 billion share repurchase authorization. The company intends to repurchase at least $3 billion in 2026, signaling confidence in its financial strategy and commitment to enhancing shareholder value. These initiatives are underpinned by significant operational changes and a strategic market approach aimed at ensuring sustainable growth and financial flexibility.
Key Highlights
- 1Verizon expects to return approximately $55 billion to stockholders through dividends and share repurchases by the end of 2028.
- 2The quarterly dividend has been increased to $0.7075 per share, representing an annualized increase of $0.07 (2.5%).
- 3A new $25 billion share repurchase program has been authorized by the Board of Directors.
- 4Verizon plans to repurchase at least $3 billion of its common stock in 2026 under the new authorization.
- 5These capital return plans are supported by expected improvements in the company's cost structure and strategic market approach.
- 6The company anticipates these changes will provide funding for continued business investments and further reduction of net unsecured debt to Adjusted EBITDA ratio.